California HOA Laws 2026: Balcony Inspections & Special Assessments Hit San Diego Condos

SB 326 Balcony Inspection Deadline Creates Urgent Compliance Pressure

The most significant change is SB 326's January 1, 2026 deadline for initial inspections of exterior elevated elements in condominium associations with 3+ units. This law requires licensed structural engineers to inspect balconies, decks, walkways, and stairways for safety issues. San Diego inspectors report average costs of $300-500 per balcony, with total inspection budgets ranging from $2,000-$20,000 depending on building size—particularly impacting older condo complexes near Sail Bay and coastal high-rise condos along Mission Boulevard.

The real financial shock comes from repairs: when issues are found, special assessments of $40,000 to $60,000 per unit are becoming common in communities with deferred maintenance. Post-deadline, cities including San Diego are ramping up enforcement with daily fines of $100-500 until compliance is achieved.

SB 410, also effective January 1, 2026, now requires mandatory disclosure of these inspection reports to prospective buyers, adding another layer of complexity to condo sales.

New HOA Laws Cap Fines, Expand Requirements Across San Diego

Beyond balcony inspections, several additional laws took effect in 2025-2026 as part of broader California housing law changes. AB 130, effective July 1, 2025, caps non-safety HOA fines at $100 per violation and requires cure opportunities before penalties. While this protects homeowners from excessive fines, it doesn't eliminate the core compliance burden.

SB 900, effective January 1, 2025, makes HOAs responsible for utility repairs originating from common areas. SB 770 eliminates insurance requirements for EV charging stations, while SB 625 requires HOAs to allow 'substantially similar' rebuilding after disasters.

For San Diego condo owners in older buildings throughout Pacific Beach, Mission Beach, La Jolla, and Downtown, the combination of inspection requirements, potential repairs, and disclosure obligations is creating a compliance maze that many prefer to avoid entirely.

Cash Buyers Offer As-Is Exit Strategy for Condo Owners Facing HOA Costs

As special assessments loom and inspection reports reveal costly repairs, many San Diego condo owners are choosing to sell as-is rather than navigate the compliance process. The San Diego condo market dynamics favor quick sales, as cash buyers purchase properties in current condition, allowing sellers to avoid inspection-triggered repairs, special assessment payments, and HOA board drama.

This is particularly attractive for owners in buildings that missed the January 1 deadline or those facing five-figure special assessments. In California, special assessments attach to the owner, not the property, meaning sellers typically pay at closing—unless they sell to a cash buyer who can close quickly before assessments are levied.

For older condos with obvious balcony issues or buildings announcing special assessments, a cash sale eliminates months of uncertainty and thousands in compliance costs.

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